Question: Southeast Pest Control Inc was started when its owners invested
Southeast Pest Control, Inc., was started when its owners invested $20,000 in the business in exchange for common stock on January 1, 2011. The cash received by the company was immediately used to purchase a $15,000 heavy-duty chemical truck, which had no residual value and an expected useful life of five years. The company earned $13,000 of cash revenue during 2011 and had cash expenses of $4,500. Prepare an income statement, statement of changes in shareholders’ equity, and statement of cash flows for the year ended December 31, 2011, and a balance sheet at December 31, 2011.
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